Boosting Public Participation in Infrastructure
The move is part of the government’s broader plan to monetise ₹50,000 crore of road assets this fiscal and construct 10,000 km of highways. InvITs (Infrastructure Investment Trusts) are tools used to raise funds from the public by offering units backed by toll-generating projects. Investors receive regular income from toll revenues, making it attractive for individuals seeking steady returns.
Previous Success and Assured Returns
In October 2022, NHAI’s first InvIT issue of NCDs raised ₹1,500 crore, with 25 percent reserved for retail investors. It offered a 7.9 percent coupon, translating to an 8.05 percent annual return. Encouraged by the response, the government is now planning to raise retail participation further in upcoming rounds, with a final decision expected in 2–3 months.
Over ₹43,000 Crore Raised So Far
Since its launch in October 2021, the National Highways Infrastructure Trust (NHIT) has raised ₹43,638 crore across four rounds up to FY25, covering 2,345 km of highways. These include completed and operational toll roads, ensuring cash flow for investors.
New Quality Norms for Road Projects
In a major policy shift, DPR contracts (Detailed Project Reports) will no longer be awarded based solely on the lowest bid (L1). Gadkari stressed that this approach has led to compromised quality and road safety issues. Now, technical expertise, experience, and personnel quality will be prioritized in selecting consultants.
NHIDCL to Get Dedicated Workforce for Border Roads
The National Highways & Infrastructure Development Corporation Ltd (NHIDCL) will soon establish a permanent cadre of 1,000 personnel, recruited from border states like Uttarakhand, J&K, Arunachal Pradesh, and Meghalaya. The focus is to accelerate strategic road development in sensitive regions.
